| Annotation: | The article explores the scientific approaches to identifying the relationship between such concepts as financial affordability (population involvement) and financial stability. Particular attention is paid to the issue of indicators through which the relationship between these concepts can be explored. The example of different countries shows the peculiarities of financial accessibility. Thus, this term can be interpreted as the ability to open a current account at a bank or other financial institution, access to credit services of official financial institutions that allow the population to invest in education or to open and expand their own business, access to insurance products that help people better manage financial risks, or as the ability to conduct financial transactions from account to account instead of cash payments, which clearly increases the efficiency and transparency of cash flows. The study showed that financial affordability can be quantitatively assessed with the system of indicators developed by the International Monetary Fund: the number of branches of commercial banks and non-banking financial institutions, the number of access points to financial services, the number of ATMs of commercial banks, the number of deposits per 1,000 persons of adult population, number of credit agreements per 1 thousand adults, the ratio of non-working bank loans to the total value of the bank loan portfolio, bank capital, bank assets, etc. Financial affordability and financial stability have been found to be closely linked through the following characteristics: financial openness, tax rates, public awareness and depth of credit information. While financial openness promotes a trade-off between financial stability and affordability, low tax rates, educational attainment and depth of credit information allow for synergies between financial affordability and financial stability. The impact of higher financial openness on the trade-off between affordability and financial stability may be particularly noticeable in less developed countries, where it is more difficult to ensure efficient distribution of funding for the benefit of the creditworthy population and firms. |
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